9M 2016 | Analysts Briefing 07 November 2016 Outline 9M 2016 - PowerPoint PPT Presentation

9M 2016 | Analysts’ Briefing 07 November 2016

Outline 9M 2016 Results Financial Statements • Margins • Capex • Operating Statistics • 2

Key Messages 1. Ayala Land continues to deliver a strong bottom line with a net income of P15.1b, up 17% year-on-year driven by higher revenues and consistent margin improvement initiatives. 2. Total revenues grew 14% to P85.5b driven by the sustained growth of the residential and office for sale segments, complemented by new commercial lot sales and the strong performance of shopping centers. 3. Total capex spent at P63.9b on track with the completion of development and leasing projects. 4. Ayala Land launched P72.6b worth of projects during the period. 3

Net income up 17% to P15.1b Income Statement 9M 2016 9M 2015 Change % Real Estate Revenues • (in Php millions) higher by 14% Total Revenues 85,489 75,047 10,442 14% Real Estate* 84,092 73,637 10,455 14% GAE ratio improved to Interest & Other Income • 1,397 1,410 (13) -1% 5.7% from 6.2% Equity in Net Earnings of Associates and JVs 345 (145) 490 338% Interest & Investment Income 686 912 (226) -25% EBIT margin higher at Other Income • 366 643 (277) -43% 34% (vs. 33%) Expenses 62,209 54,708 7,502 14% Real Estate 51,325 44,971 6,354 14% GAE 4,900 4,648 252 5% Interest Expense, Financing and other charges 5,984 5,088 895 18% Income Before Income Tax 23,280 20,339 2,940 14% Provision for Income Tax 5,876 5,133 742 14% Income before Non-Controlling Interest 17,404 15,206 2,198 14% Non-Controlling Interest 2,343 2,381 (38) -2% NIAT Attributable to ALI Equity Holders 15,061 12,825 2,236 17% *Includes interest income on accretion. 4 Per statutory reporting (17q), interest income on accretion is classified under Interest Income

Steady performance of core businesses Revenue Breakdowns 9M 2016 9M 2015 Amount % (in P millions) Property Development 56,198 50,289 5,909 12% Residential 9% New bookings and project completion 47,065 43,079 3,986 Office for Sale 6% Contribution of ALVEO Park Triangle South Tower 4,645 4,366 279 Comm’l / Ind’l lots 4,487 2,843 1,644 58% New lot sales in Arca South, Alviera and Altaraza Commercial Leasing 19,173 17,179 1,993 12% Shopping Center 10,587 9,238 1,901 15% Improved performance of stable and new malls Office 10% Contribution of newly opened offices 4,012 3,631 341 Hotels and Resorts 6% Higher REVPAR of hotels and resorts 4,574 4,310 248 Services 48,702 30,540 18,161 59% Gross Construction 47,655 29,634 18,021 61% Increase in order book Property Mgmt. 15% Increase in number of managed properties 1,046 906 140 Sub – Total 124,072 98,008 26,064 27% Interco Adjustments (39,980) (24,371) (15,608) 64% Elimination of intercompany profits arising from internal construction projects. Real Estate Revenues 84,092 73,637 10,455 14% Interest & Other Income 1,397 1,410 (13) -1% Total Revenues 85,489 75,047 10,442 14% 5

Margins across various product lines Margin Performance 9M 2016 9M 2015 Property Development (Gross profit) Residential Horizontal 42% 43% Lower margin on newly launched projects due to higher land and development cost Vertical 34% 35% Office for Sale Sustained margins of newly launched projects 38% 38% Commercial and Industrial Lots 40% 49% Higher contribution from lower margin lot sales Commercial Leasing (EBITDA) Shopping Centers 68% 69% Lower margin on newly opened malls Cost containment initiatives and improved performance of Office 90% 89% stable offices Lower occupancy of resorts Hotels & Resorts 27% 28% Services (EBITDA) Construction and 8% 13% Bulk of accomplishments are from lower margin contract Property Management packages 6

Continued diversification into new growth centers NIAT contribution per business center 32% ] 36% Other Vismin ] Other Luzon Other MM 40% ] FTI 34% ] Manila Vertis 27% Cebu ] 24% Alabang ] BGC Nuvali Makati 2011 2012 2013 2014 2015 9M 2016 7

Continued diversification of core business segment NIAT contribution per core business segment 34% Hotels & Resorts ] Office 29% Malls ] Commercial and Industrial Lots Residential and Office for sale 27% ] 38% 36% ] ] 38% ] 2011 2012 2013 2014 2015 9M 2016 8 Note: Excludes NIAT from services. Target is to increase the recurring income contribution to 50% by 2020

Solid balance sheet to support growth Balance Sheet September December Change % (in P millions) 2016 2015 Cash & Cash Equivalents* 23,680 19,540 4,139 21% Total Borrowings 158,892 130,996 27,896 21% Stockholders’ Equity 165,569 149,825 14,446 10% Current Ratio 1.09 1.14 Debt-to-Equity Ratio ** 0.97 0.87 Net Debt-to-Equity Ratio** 0.82 0.74 Return on Equity*** 14.6% 14.7% *Includes FVPL (financial assets at fair value through profit and loss) **Consolidated debt over equity inclusive of minority interest ***Attributable to equity holders of ALI 9

Sustained capital efficiency via stretched maturities lower cost of debt and managed debt mix As of September 30, 2016 Total Borrowings : Php158.9B : Short-term Php31.8B (20%), Long-term Php127.1B (80%) 9.0% 35 7.9% Short-term Debt Maturity (in Php Billions) 7.3% 8.0% 29.2 30 Long-term Debt Maturity (in Php Billions) 7.0% 6.2% Borrowing Cost 25 5.3% 5.1% 6.0% 4.5% 4.7% 4.5% 20 5.0% 4.0% 15 15.2 15.8 16.5 15.6 12.9 14.4 3.0% 10 11.8 2.6 2.0% 9.0 8.0 5 1.0% 2.0 4.4 1.5 0.0% 0 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 2012 2015 9M 2016 2013 2014 Floating Floating Floating Floating 16% 26% 26% Fixed Floating 31% 53% 47% Fixed Fixed Fixed Fixed 69% 74% 74% 84% 10

Total capex spent reached P63.9b 9M 2016 Capex Breakdown 9M 2016 Capex Spend (In Php billions) FY 2016 9M 2016 Budget Actual Land Acquisition 17% Land Acquisition 15.4 10.8 Residential 34.1 25.7 Others* Malls 13.6 8.6 Residential 10% Offices 7.2 6.1 40% Estate Hotels and Resorts 3.0 2.8 Development Estate Development 3.8 3.7 6% Others* 7.4 6.2 Total 84.5 63.9 Offices Hotels 9% Malls 4% 14% 11 * ALI Capital, Services and other investments

Residential: Sales take-up 2% higher year-on-year Sales Take-Up (In Php Bn) Sales take-up: P84.3b • (average of P9.4b in monthly 31.2 30.5 30.4 29.0 29.2 sales) 24.7 23.4 ALP 22.4 22.0 Alveo Overseas Filipino Sales : P19.6b • Avida (23% of total) Amaia Bellavita Booked sales: P57.9b • (up 12% yoy) 3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015 1Q 2016 2Q 2016 3Q 2016 Booked Sales (In Php Bn) Total value of residential and • office for sale projects launched 24.6 23.8 as of 9M 2016: P49.2B 23.1 21.3 20.9 ALP 18.3 16.9 Alveo 15.0 14.0 Avida Amaia Bellavita 3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015 1Q 2016 2Q 2016 3Q 2016 12 Note: Sales take-up includes Office for Sale projects under the Residential Business

Continued build-up of unbooked revenues Unbooked Revenues • Unbooked revenues up 6% (in billion php) vs P129b in 2015 137 129 122 99 65 48 19 12 2009 2010 2011 2012 2013 2014 2015 9M 2016 13

Key Launches: Residential Riomonte - Tranche 5 (July 2016) Nuvali -134 units, P1.4b | 40% cum. take-up 14

Key Launches: Residential Callisto - Tower 1 (September 2016) The Veranda - North Tower (September 2016) Circuit, Makati - 430 units, P3.5b | 13% cum. take-up Arca South, Taguig - 195 units, P1.7b | 16% cum. take-up 15

Key Launches: Residential Atria – Tower 2 (August 2016) Atria, Iloilo - 160 units, P793m | 13% cum. take-up 16

Malls: Total GLA of 1.57m sqm* Completion Malls Construction Pipeline Total • Average Occupancy Rate: 93% 983k Date GLA for completion (in k sqm) • Average Mall Lease Rate: P1,154/sqm/month 2016 (57) Lio El Nido Retail, Palawan 3 • Same Mall Rental Growth: 5% Southpark, Alabang MM 47 Solaire Retail, Paranaque MM 5 BHS Central BGC, Taguig MM 2 Mall Space added in 3Q 2016: 2017 (218) Vertis North, QC MM 47 The 30 th , Pasig MM 28 Tutuban Mall - 56K GLA Riverside Iloilo - 1K GLA Southvale, Alabang MM 6 Feliz Town Center, Pasig MM 79 Cloverleaf, QC MM 38 **Ayala Malls, Marikina MM 20 2018 (255) Citygate, Makati CBD MM 9 Circuit Mall, Makati MM 58 Capitol Central, Negros Occidental 74 Central Bloc, Cebu 42 Bay Area Ph1, Paranaque MM 72 2019 (420) Arca South Ph1, Taguig MM 73 Bay Area Ph2, Paranaque MM 178 **One Ayala, Makati CBD 54 **Gatewalk Central, Cebu 115 2020 (33) **Ayala Triangle Retail, Makati CBD MM 9 Park Triangle Retail BGC, Taguig MM 24 **Launched 2016 17 *excludes OCLP Malls GLA of 137K